Morocco's subsidised health insurance scheme,Régime d'Assistance Médicale (RAMED),launched in March 2012,is experiencing early-stage difficulties with its target to increasehealthcare accessibilityto those on low incomes. This is to be expected, given the evidence of bribery and corruption, and the shortage of doctors in the sector.BMIbelievesthe commitment to improvegovernance and implement controls in the sector will be fulfilled in the medium-to-longterm. As such, we maintainthat government healthcare spending will outpace private healthcare spending over the forecast 2011-2016 period.

Headline Expenditure Projections

Pharmaceuticals: MAD10.10bn (US$1.25bn) in 2011 to MAD11.24bn (US$1.30bn) in 2012; +11.3% in local currency terms and +4.5% in US dollar terms. Forecastbroadly unchangedfrom Q412.

Healthcare: MAD41.99bn (US$5.19bn) in 2011 to MAD47.09bn (US$5.46bn) in 2012; +12.2% in local currency terms and +5.4% in US dollar terms. Forecastslightly higherfromQ412, on account of slightly lower historical figures.

Medical devices: MAD2.19bn (US$270mn) in 2011 to MAD2.47bn (US$287mn) in 2012; +13.1% in local currency terms and +6.2% in US dollar terms. Forecast broadly unchanged from Q 4 12 .

While the market is small in terms of absolute numbers, relative per capita spending on medicines is expected to improve over the long term. As the country continues its economic convergence with developed Europe, drug consumption is also expected to rise. However, financial inefficiencies within the health insurance system mean that the National Health Insurance Institution ( RZZO ) is unable to always meet its obligations on time, leaving patients to pay for formerly reimbursed medicines or hospitals having to cover the difference .

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.

Pharmaceuticals: RSD75.70bn (US$1.03bn) in 2011 to RSD81.44bn (US$0.92bn) in 2012; +7.6% in local currency terms and -11.0% in US dollar terms.
Healthcare: RSD347.71bn (US$4.74bn) in 2011 to RSD367.32bn (US$4.14bn) in 2012; +5.6% in local currency terms and -12.6% in US dollar terms.
Medicaldevices: RSD16.64bn (US$223mn) in 2011 to RSD19.98bn (US$223mn) in 2012; +20.1% in local currency terms and -0.7% in US dollar terms.